Key Highlights

  • Net income per share of USD 2.43 fell 4% year over year and missed the consensus estimate of USD 2.58.
  • Revenue rose 6% to USD 1,275.6 million but came in below the consensus estimate of USD 1.30 billion.
  • Aggregate gross Margin improved by 240 basis points to a third quarter record of 29.6% on 10% higher volumes.
  • Updated guidance puts 2026 Revenue at USD 3,375 to 3,425 million and adjusted EBITDA at USD 475 to 505 million.

Knife River Corporation (NYSE:KNF) reported third quarter 2026 revenue of USD 1,275.6 million, up 6% from USD 1,203.7 million a year earlier and below a consensus estimate of USD 1.30 billion. Net Income per share was USD 2.43 against a consensus estimate of USD 2.58 and USD 2.52 a year earlier. Net income was USD 137.9 million versus USD 143.2 million, and adjusted EBITDA was USD 271.7 million versus USD 272.8 million, with the adjusted EBITDA margin at 21.3% compared with 22.7%.

Aggregates Strength Met Contracting Headwinds

President and Chief Executive Officer Brian Gray said aggregate volumes rose 10% on internal pull-through and higher third-party sales, while aggregate pricing rose mid-single digits and per-unit variable production costs fell. Aggregate revenue was USD 249.7 million against USD 218.1 million. He said market dynamics, project delays and higher fuel costs from the second quarter carried into the third, with the largest impact in contracting services, and that management views the headwinds as temporary. By segment, Mountain revenue jumped 34% to USD 308.1 million, Central rose 6% to USD 462.0 million, West fell 8% to USD 365.8 million, and Energy Services EBITDA fell 18% to USD 32.4 million.

Updated 2026 Guidance and Sharper EDGE

The company updated full year 2026 guidance to reflect continued near term headwinds, projecting revenue of USD 3,375.0 million to USD 3,425.0 million and adjusted EBITDA of USD 475.0 million to USD 505.0 million. It guided aggregates, ready-mix and asphalt volumes each to rise high-single digits to low-double digits, with aggregates pricing up mid-single digits and depreciation, depletion and amortization up mid-teens. The guidance assumes normal weather, economic and operating conditions and excludes future acquisitions. Management also announced Sharper EDGE initiatives, built on the Competitive EDGE program launched in 2023, and plans an investor day in the coming months.

Guidance Against Nine Month Results and Balance Sheet Position

Nine month revenue of USD 2,624.3 million against full year guidance of USD 3,375.0 million to USD 3,425.0 million leaves USD 750.7 million to USD 800.7 million for the fourth quarter. Nine month adjusted EBITDA of USD 379.6 million against guidance of USD 475.0 million to USD 505.0 million leaves USD 95.4 million to USD 125.4 million. Net Leverage was 2.9x, with USD 118.0 million of unrestricted cash, USD 1.6 billion of gross Debt and USD 448.2 million of revolver capacity. Nine month acquisitions cost USD 185.7 million versus USD 528.0 million a year earlier, and USD 55.4 million is planned for organic growth projects in the rest of 2026.